Hong Kong’s retail sales fell by 2.9% year-over-year in October, according to government data released on Friday. This marks the eighth consecutive month of decline, with sales dropping to HK$32.9 billion (approximately $4.23 billion). This follows a 6.9% decrease in September and a 10.0% drop in August.
A government spokesperson noted that recent measures introduced by Mainland China to stimulate the economy could help improve consumer sentiment and economic activity in Hong Kong. However, the spokesperson emphasized that shifting consumption patterns would continue to pose challenges.
Among the measures announced by China is the resumption of a multiple-entry visitor scheme for Shenzhen residents traveling to Hong Kong, which is expected to boost spending.
In terms of volume, October retail sales saw a 4.9% decline compared to the previous year, an improvement from the 8.7% drop recorded in September. For the first ten months of 2024, total retail sales value has decreased by 7.1% compared to the same period in 2023, while the volume of total retail sales has fallen by 8.8%, according to provisional estimates.
Starting December 1, China will ease visa restrictions for Shenzhen residents visiting Hong Kong, and for Zhuhai residents traveling to Macau beginning January 1.
In October, visitor arrivals in Hong Kong reached 4.09 million, an increase of 18.3% from the same month last year. This is up from 3.06 million in September, 4.45 million in August, and 3.92 million in July. Of these, 3.14 million were mainland Chinese visitors, marking a 16.2% rise compared to the previous year, up from 2.29 million in September, 3.66 million in August, and 3.14 million in July.
Sales of jewelry, watches, clocks, and valuable gifts fell by 11.1% in October compared to the previous year, following a 17.9% decline in September. Similarly, sales of clothing, footwear, and related products dropped by 9.4% in October after a 7.9% decrease in September.
